CONTRACTS DIVISION METRICS: WHAT TOOLS ARE IN YOUR TOOLBOX? Presented by Heidi Timmerman & Landon Hill Modified from NCMA World Congress 2016 presentation 1
AGENDA Why use metrics How to develop metrics What to measure (Examples) 2
WHY USE METRICS? “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” – H. James Harrington 3
WHY? Objective information Timeliness Visibility Better decisions We get what we measure…. 4
HOW TO DETERMINE WHAT TO MEASURE? 5
HOW? Team member input Industry Standards Contract Requirements Answer specific questions 6
WHAT DO WE MEASURE? 4 Critical Areas Employee Customer Financial Operational 7
EMPLOYEE METRICS 8
EMPLOYEE METRICS → Workload → Productivity → Morale 9
EXAMPLE: SET STANDARD MEASUREMENTS Red = more than 10 hours/month Yellow = 8-10 hours/month Green = less than or equal to 4-7 hours/month Metric Expression Red if Yellow if Green if Oct-15 Nov-15 Employee ≤4 -7 >10 # 8-10 5.6 8.5 Overtime Average 10
EMPLOYEE METRICS Metric Workload - # of Transactions per Employee METRIC Expression Red if Yellow if Green if OCT-15 NOV-15 # Transactions per ≥ 35 # 23.5 36.2 25 -35 <24 team member Calculation # of Transactions divided by # of employees Goal Range Red = More than or equal to 35 Yellow = between 25 and 34 Green = Less than 24 11
EMPLOYEE METRICS Metric Professional Development/Training METRIC EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 Training obtained # of training hours < 2 2 – 3 ˃3 4.4 3.2 this month /employee Calculation # of Training hours divided by the # of Employees Goal Range Red = Less than or equal to 2 Yellow = between 2 and 3 Green = More than 3 12
EMPLOYEE METRICS Metric Employee Satisfaction – Survey METRIC EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 YTD Employee % of Satisfaction satisfied < 75% 75% - 84% ˃84 % 85.6% 85.6% Survey once per FY employees Calculation Survey taken once per year Goal Range Red = Less than 75% Yellow = between 75% and 84% Green = More than 84% 13
EMPLOYEE METRICS SUMMARY Yellow METRIC EXPRESSION Red if if Green if Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 YTD Employee Overtime # >10 8-10 ≤4 -7 5.6 8.5 4.8 5.8 6.7 8.2 8.4 10.8 4.6 3.2 7.6 6.8 6.75 Average # Transactions per team # ≥35 25 -35 < 24 23.5 36.2 32 34.0 22.5 26.2 27 35.2 23.8 21.3 21 .2 20.4 29.58 member # of Training training obtained this < 2 2 – 3 ˃3 4.4 3.2 2.6 1.7 4.6 3.5 2.2 5.1 3.6 2.7 3.8 2.8 3.35 hours month /employee Employee % of Satisfaction 75% - satisfied < 75% ˃84 % 85.6% 85.6% Survey once per 84% employees FY EMPLOYEE OVERALL 14
CUSTOMER METRICS 15
CUSTOMER METRICS Metric METRIC EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 On-time delivery % < 77% 77% - 81% > 81% 83% 86% DOE targets: > 84% 16
SUPPLIER SPECIFIC DELIVERY STATISTICS 1400 100% 99% 99% 1200 98% 97% 97% 1000 97% 96% 96% 800 95% 95% 94% 600 93% 93% 400 92% 91% 200 90% 0 89% October November December January February March On Time > 5 Days Late On Time %
Supplier Specific Delivery Statistics 100% 95% 90% 85% 80% FY10 FY11 FY12 FY13 FY14 FY15 On-Time Delivery % Goal 18
CUSTOMER METRICS METRIC EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 Average cycle time for new actions less than # of days >11 8 - 11 < 8 8.6 7.6 $150,000* Average cycle time for new actions greater than # of days >34 28 - 34 <28 23 38 or equal to $150,000* Average cycle time for all # of days >17 11 - 17 <11 9 12.6 transactions DOE targets: < SAT = < 9 days > SAT = < 30 days All = 11 days 19
CUSTOMER METRICS SUMMARY Aug- Sep- METRIC YTD EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 Dec-15 Jan -16 Feb -16 Mar-16 Apr-16 May-16 Jun- 16 Jul-16 16 16 On-time % < 77% 77% - 81% > 81% 83% 86% 82.4% 79.2% 81.6% 76.8% 79.8% 82.3% 86% 80.5% 83.5% 80.5% 81.8% delivery Average cycle time for new ˃ 11 actions less # of days 8 - 11 < 8 8.6 7.6 13.5 10 7.5 7.8 8 9.2 6.9 10.2 9.4 7.1 8.8 than $150,000* Average cycle time for new ˃ 34 actions greater # of days 28 - 34 <28 23 38 32.2 29 26.4 27.2 30.1 20.5 34.6 29.6 31.7 27.8 29.2 than or equal to $150,000* Average cycle ˃ 17 time for all # of days 11 - 17 <11 9 12.6 9.8 10.5 13 10.8 12.4 8.6 6.5 4.9 6.5 9.4 9.5 transactions CUSTOMER OVERALL 20
FINANCIAL METRICS 21
FINANCIAL METRICS METRIC EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 ≤ 100% YTD Budget vs. Actual % >100% 100% 103% Cost savings and avoidance as a percentage of all % <1% 1 to 3 % > 3% 1.8% 3.4% dollars transacted 22
FINANCIAL METRICS METRIC EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 Purchasing Costs (% of ≤ 2% % > 3% 2% – 3% 1.5% .98% award $) ≤ $350 Transaction Cost $ > $500 $350 - $500 $254 $365 23
FINANCIAL METRICS SUMMARY Jul-16 Aug-16 Sep-16 YTD METRIC EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 YTD Budget vs. % >100% N/A ≤ 100% 100% 103% 86% 82% 92% 101% 98% 99% 91% 86% 88% 95% 93% Actual Cost savings and avoidance as a % <1% 1 to 3 % > 3% 1.8% 3.4% 3.4% 3.1% 2.4% 2.9% 3.5% 3.1% 2.6% 2.9% 3.2% 3.1% 3.0% percentage of all dollars transacted Purchasing Costs (% of % > 3% 2% – 3% ≤ 2% 1.5% 0.98% 1.6% 2% 2.3% 3.6% 1.5% 2.4% 1.7% 2% 3.6% 1.9% 2.1% award $) Transaction $ > $500 $350 - $500 ≤ $350 $254 $365 $346 $376 $120 $222 $289 $245 $362 $343 $306 $248 $290 Cost FINANCIAL OVERALL 24
OPERATIONAL METRICS 25
OPERATIONAL METRICS METRIC EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 Rat ificat ions ˃ 5 ≤1 # 2-4 1 2 Request ed % of Compet it ive % < 45% 45% - 55% > 55% 52.3% 57% Awards ≥80 S mall Business Goals % > 75% 75-79 83% 76% 26
OPERATIONAL METRICS METRIC EXPRESSION Red if Yellow if Green if Oct-15 Nov-15 Purchase Card Use % of Pcard holders ≥91% ˂ 85% 85% -90% 86% 94% Compliance compliant Purchase Card transaction ˂ 85% ≥91% % 85% -90% 92% 94% coding completed on time ≥91% Purchase Card Approvals on ˂ 85% % 85% -90% 95% 96% time 27
OPERATIONAL METRICS SUMMARY Green if METRIC EXPRESSION Red if Yellow if Oct-15 Nov-15 Dec-15 Jan - 16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul -16 Aug-16 Sep-16 YTD Purchase Card % of Pcard 85%- Use holders ˂ 85% ≥91% 86% 94% 91% 92% 94% 90% 92.5% 96% 93% 98% 91.5% 90.5% 92.4% 90% Compliance compliant Purchase Card transaction 85%- coding % ˂ 85% ≥91% 92% 94% 96% 92% 90% 94% 98% 99% 98.8% 89.9% 93% 92% 94.1% 90% completed on time Purchase Card 85%- Approvals on % ˂ 85% ≥91% 95% 96% 90.4% 93% 94.7% 90% 94% 96% 89% 93% 94.7% 96% 93.5% 90% time Ratifications # ˃ 5 2- 4 ≤1 1 2 1 1 0 1 0 2 1 0 3 0 1 Requested % of 45% - Competitive % < 45% > 55% 52.3% 57% 56% 46% 49.5% 58% 56% 60% 61.5% 52% 54.5% 57.5% 55% 55% Awards Small Business % > 75% 75-79 ≥80 83% 76% 96% 75% 100% 95% 95% 100% 89% 85% 95% 78% 89% Goals OPERATIONAL OVERALL 28
METRICS SUMMARY 29
METRICS COVER Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 YTD Employee Customer Financial Operational 30
METRICS COVER Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 YTD Employee # of trans # of trans per team per team Training member/ member Employee Overtime red it ems Customer Avg. Cycle Avg. Cycle Avg. Cycle Avg. Cycle On-Time Time all Time Time Time Delivery new ˃ $150K ˂ $150K ˃ $150K actions red it ems Financial YTD YTD Budget vs. Purchasing Budget vs Actual/ Costs Actual Purchasing red it ems Costs Operational red it ems 31
SUMMARY Why use Metrics? Facts & Data – Metrics are a tool that facilitates objective discussion and decisions Timeliness - Metrics allow you to see trends/issues as they happen Visibility – Metrics add transparency that team members and management can see Decisions – Metrics facilitate informed decisions 32
SUMMARY, CONT. How to Develop Metrics Team Members Industry Contract requirements Need answers to specific questions 33
SUMMARY, CONT. What to measure; Examples in Employee Customer Financial Operational Ultimately Tools for your toolbox! 34
BACK-UP SLIDES 35
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